By: Daniel Yao Akpabli | ignewss — Accra, Ghana
President John Dramani Mahama has warned heads of State-Owned Enterprises (SOEs) that executive compensation, board appointments and government support will increasingly be tied to measurable performance, profitability and the value delivered to the Ghanaian public.
Addressing the State Interests and Governance Authority (SIGA) Governing Board and CEOs Conference in Accra on Thursday, President Mahama said his administration was taking steps to strengthen governance, financial management and accountability across state-owned institutions.
Under the new approach, executives of state institutions that fail to meet agreed performance targets will not receive salary increases or performance-related bonuses.
The President also cautioned profitable state-owned enterprises against using their financial gains to provide additional perks and benefits for executives, stressing that the primary financial obligation of profitable entities is to generate and pay dividends to the state.
Institutions that fail to submit audited financial statements or do not hold their mandatory Annual General Meetings (AGMs) will also face prompt administrative sanctions.
“Executive leadership, compensation, and operational mandates will be strictly tied to verifiable performance, profitability, and public service delivery,” President Mahama said.
He acknowledged improvements recorded by some state institutions but stressed that his administration was interested in sustainable, long-term performance rather than temporary gains.
The conference highlighted the financial turnaround recorded by state entities operating under SIGA’s oversight.
According to figures presented at the conference, the combined financial performance of the entities improved from a net loss of GH¢2.26 billion to a net profit of GH¢19.8 billion.
The Director-General of SIGA, Professor Michael Kpessa-Whyte, attributed the turnaround to what he described as stricter enforcement of administrative accountability and structural governance measures.
President Mahama’s warning follows the recent dissolution of the boards of nine state institutions that failed to meet key performance expectations, an action that underscored the administration’s position on accountability and performance in the management of state assets.
The President’s engagement with the leadership of state-owned enterprises is the third direct meeting between the Presidency and state enterprise leaders in two years, reflecting the government’s continued focus on improving the management and financial performance of public institutions.
The administration says the reforms are intended to ensure that state-owned enterprises operate efficiently, remain financially sustainable and ultimately deliver greater value to the people of Ghana.
Source: www.ignewss.com